DLH Holdings Corp. (DLHC) AI Stock Analysis
DLHC AI stock analysis summary
AI ResearchDLH Holdings Corp. provides technology-enabled business process outsourcing, program management, and public health analytics services to federal agencies. Revenue reached $344.5M in FY2025 before declining sharply, with trailing twelve-month revenue dropping to $253.5M. The company faces balance sheet pressure with $141.1M in total debt against $235,000 in cash and short-term investments.
- Market cap
- $57.2M
- Revenue (TTM)
- $253.5M
- P/E
- — fwd 17.5x
- 1Y return
- -28.2% S&P 500 16.8%
- Avg. target
- $7.00 77.2% vs last close
Bull case
- The single analyst covering the stock has a mean price target of $7.00, implying a 77.2% upside from the recent price of $3.95.
- DLH generated positive free cash flow of $23.0M in FY2025 while maintaining modest capital expenditures of $241,000.
- Shares trade at a low price-to-sales multiple of 0.2x and a price-to-book ratio of 0.6x.
Bear case
- Quarterly revenue plunged 46.9% year-over-year for the period ended June 30, 2026, contributing to an EPS of -$1.49 over the trailing twelve months.
- Total debt stands at $141.1M against just $235,000 in cash and short-term investments, resulting in a current ratio of 0.67.
- Revenue is projected to fall further to $209.4M in FY2026 and $175.0M in FY2027, representing a 16.4% year-over-year drop.
What DLH does
DLH Holdings Corp. specializes in technology-enabled business process outsourcing, program management solutions, and public health research and analytics services across the United States. It delivers defense and veteran health solutions, encompassing healthcare, technology, and logistics services for agencies such as the VA, Defense Health Agency, and Navy Bureau of Medicine and Surgery. DLH also provides human services solutions, including electronic medical records migration, data management, and health assessments. In addition, it designs IT system architecture and offers public health research, clinical trials, and epidemiology studies, supported by its Infinibyte platform-as-a-service cloud service.
Growth and profitability
DLH grew revenue at a 5-year CAGR of 10.5% from FY2020 to FY2025, peaking at $395.9M in FY2024 before dropping 13.0% to $344.5M in FY2025. Net income fell from $7.4M in FY2024 to $1.4M in FY2025, with net margin narrowing from 1.9% to 0.4%. For the trailing twelve months, revenue totaled $253.5M with an operating margin of -8.9% and diluted EPS of -$1.49. In the latest quarter ended June 30, 2026, quarterly revenue dropped 46.9% year-over-year, while quarterly earnings declined 75.0% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, DLH held $235,000 in cash and short-term investments against total debt of $141.1M, resulting in net debt of $140.9M. The company had a current ratio of 0.67 and a debt-to-equity ratio of 1.51 against shareholders' equity of $93.3M. In FY2025, operating cash flow was $23.2M, and free cash flow stood at $23.0M after capital expenditures of $241,000. Over five years, the company's share count expanded by 0.7%.
Valuation and performance
DLH trades at a forward P/E of 17.5x, slightly above the 17.2x median of its US-listed Industrials peers. Its price-to-sales multiple is 0.2x compared to the peer median of 1.5x, and its EV-to-EBITDA is 13.3x versus the peer median of 13.9x. The stock has underperformed broader markets, declining 28.2% over the past year while the S&P 500 gained 16.8%. Over a five-year period, DLH returned -72.3% compared to an 83.0% return for the benchmark.
What analysts expect
One analyst covers DLH, assigning a Strong Buy rating. The mean price target is $7.00, representing a 77.2% premium over the last close of $3.95. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $209.4M and EPS of -$0.76. For the following fiscal year, 1 analyst expects revenue of $175.0M and an EPS of -$0.69. DLH beat EPS estimates in 2 of the trailing 4 quarters, with its next earnings report scheduled for December 9, 2026.
Key risks and what to watch
- Liquidity risk is high with only $235,000 in cash against $140.9M in net debt and a current ratio below 1.0 at 0.67.
- Operating profitability has turned negative, reflected in a trailing twelve-month operating margin of -8.9% and return on equity of -20.8%.
- Consensus estimates project negative profitability through next year, with EPS estimated at -$0.76 for FY2026 and -$0.69 for FY2027.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DLHC AI stock analysis
This page is an AI-written research summary of DLH Holdings Corp. (DLHC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DLHC income statement, DLHC balance sheet, DLHC key metrics, DLHC analyst forecast, DLHC chart. See the DLHC stock overview for the latest quote and news.
DLHC AI stock analysis FAQ
What was DLH's revenue performance in the latest quarter?
For the quarter ended June 30, 2026, revenue dropped 46.9% year-over-year, while quarterly earnings declined 75.0% year-over-year.
Does DLHC pay a dividend?
DLH Holdings Corp. does not pay a regular dividend.
How leveraged is DLH Holdings Corp.?
As of June 30, 2026, DLH had total debt of $141.1M and cash of $235,000, which yields a debt-to-equity ratio of 1.51 and net debt of $140.9M.
What is the consensus analyst target price for DLHC?
The single analyst tracking the company has a Strong Buy rating with a mean price target of $7.00, representing a 77.2% upside to its closing price of $3.95.